For many companies today, Outsourcing has become equated with the “Saving Bucks”! We outsource in order to lower expenses and increase our profitability.  Well that makes sense - I am certainly looking at reducing my costs as much as the next web business owner! I recently came across this blog post, Ten Reasons Why Companies Outsource which confirmed Cost Savings was the number #1 motivation for Outsourcing!

Now, here’s the point… Cost savings certainly will always be a huge motivator in your outsourcing decisions; however if it your SOLE factor when contracting an outsourced professional, this could lead to a less than desirable hiring decision. It is absolutely imperative to use a complete scorecard when evaluating new outsourcing partners to ensure you are striking the balance between “Cost Savings” and “High Quality Work”.

In my published report, Six Success Strategies to Building Effective Outsourcing Partnerships, I include a section on this particular issue. I would like to pull out a small excerpt from the report that will provide some additional insight on finding the right balance between cost and quality…….

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 There can be a tendency to focus too heavily on the potential cost-savings component of outsourcing a certain business function. While saving money and increasing profitability is a quintessential factor to outsourcing, companies need to strike the right balance in recruiting the best quality Professional or Firm in the most cost-effective fashion.

For example, let’s say our case study, Snazzycar.com has posted their Pay Per Click Management project on esalesguru.com or elance.com and received a wide range of prices and proposals. They notice that a couple of the bids are significantly more reasonable then the rest of the quotes. Given their growing financial pressures, they quickly jump on the lower bid cost without fully researching the key distinctions, experience and qualifications of the various SE firms. The paradox here is that in their desperate pursuit to save money, they have potentially chosen a firm or professional that might not perform as well and ultimately cost them more money in the long term.

The rule of thumb here is to keep a balanced perspective when choosing an outsourced professional by evaluating both the cost as well as the skills, experience and track record of the prospective candidates. The irony is that the sometimes the more expensive proposal can end up saving your ebusiness more money over the long-term.  As mentioned previously, it is essential to ask ALL the right questions so that you know more of what to expect in this potential outsourcing relationship.

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You can access this full report by visiting the ESalesGuru homepage.

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